A low price doesn't always mean a better deal, and a higher price doesn't always mean better quality. The real problem is usually this: you're comparing contractors who are pricing completely different projects. These ten steps help every New Jersey homeowner compare the right way — and Remodeling Network LLC can help you organize your project before you start.
Verify the contractor's New Jersey registration
Ask every contractor for their New Jersey Home Improvement Contractor registration number. Don't just take someone's word for it — verify the registration is current and belongs to the company you're considering.
Verify insurance
Ask for a current Certificate of Insurance. Make sure you understand what coverage the contractor carries, and whether appropriate coverage is in place for employees and subcontractors working on your project.
Get more than one proposal
Never assume the first price you receive is the best price. Compare at least three qualified contractors whenever practical — but remember, three prices are only useful if you're comparing three similar scopes of work.
Have a detailed scope of work
Before comparing prices, know exactly what's being proposed. A good scope addresses demolition, framing, roofing, siding, windows and doors, insulation, electrical, plumbing, HVAC, flooring, cabinets, countertops, painting, trim, cleanup, permits, allowances, warranties and change orders. The more detailed the scope, the easier it is to compare proposals.
Check references
Ask for references from projects similar to yours. Don't just ask "was the contractor good?" — ask whether the project was completed, whether the final price stayed close to the contract price, how changes were handled, whether the job site was kept clean, and whether they'd hire the contractor again.
Look at previous projects
Pictures tell you a lot — but whenever possible, look at completed work in person. Pay attention to workmanship, trim details, siding and roofing installation, flooring, tile work, and overall finish quality. A contractor who regularly performs your type of project may be a better fit.
Understand who will perform the work
Ask whether the project will be performed by company employees, subcontractors or specialty trades. Know who supervises the subcontractors, who handles scheduling, who obtains required permits, and who is responsible if something goes wrong — before work begins.
Compare the proposals — not just the prices
The lowest price isn't necessarily the best deal. Consider price + scope + materials + experience + references + insurance + warranty + communication. A contractor who costs more may include substantially more work; a contractor who costs less may have omitted important items.
Get a written contract
Never rely on a handshake for a major home improvement project. In New Jersey, a written contract is required for home improvement work costing more than $500. Your contract should clearly identify the parties, scope of work, price, payment terms, and how changes will be handled. If something is important to you, put it in writing.
Take your time before signing
Don't let anyone pressure you into deciding immediately. A reputable contractor will give you reasonable time to review the proposal, compare contractors, check references, verify registration and insurance, ask questions, and understand the payment schedule and warranty before you make an informed decision.
Know your rights in New Jersey
New Jersey law protects homeowners who hire a home improvement contractor. These points come from the New Jersey Division of Consumer Affairs. Read them before you sign anything.
- Contractors must be registered with the State. Home improvement contractors must register with the Division of Consumer Affairs, and the registration number must appear on your contract. Check any contractor at newjersey.mylicense.com/verification. Registration is not an endorsement by the State.
- Contracts over $500 must be in writing. The contract must include the contractor's legal name, business address and registration number, a start date, a completion date, a description of the work and the total price. The Division recommends a written contract for every project.
- You are entitled to proof of insurance. The contractor must give you a copy of their commercial general liability insurance policy and the insurance company's phone number.
- Warranties and materials belong in the contract. Make sure all warranties and guarantees are in writing, and that the contract states the brand names or quality grades of the materials to be used.
- You can cancel within three business days. You may cancel a signed contract for any reason before midnight of the third business day after you receive a copy of it. Put the cancellation in writing and either hand it to the contractor or send it by registered or certified mail, return receipt requested.
- Never pay for the whole job up front, and never pay cash. The law prohibits a contractor from demanding the final payment before the work is completed. Be wary of anyone who asks for more than a third of the total before work begins.
- Ask for a lien waiver before you sign. A lien waiver is a receipt stating that workers and material suppliers will not ask you for money once you have paid the contractor. Be careful if a contractor asks you to sign a statement saying you will cover the cost of materials and labor if the contractor does not pay.
- Permits and inspections come first. All required construction permits must be obtained from your municipality, and final inspections must be completed before you make the final payment.
- Know the warning signs. Be wary of a contractor who says there is no need for a written contract, demands cash, has only a P.O. Box as a business address, has no registration number, or shows up at your door uninvited claiming to be in the neighborhood with a good deal.
- If something goes wrong. First give the contractor a chance to resolve it. If you are not satisfied, file a complaint online at NJConsumerAffairs.gov or call Consumer Affairs at 1-800-242-5846.
Read the official guidance: Consumer Brief: Hiring Home Improvement Contractors and Nail It: Helpful Tips Before You Hire a Contractor, both from the New Jersey Division of Consumer Affairs.
The Remodeling Network approach
Don't start with three contractors. Start with one clear scope.
One of the biggest problems homeowners face is trying to compare contractor proposals based on completely different descriptions of the project. That's where Remodeling Network LLC can help. We help homeowners organize their project requirements into a clear, detailed scope of work — so you understand what needs to be done before comparing contractor proposals. Once the scope is established, you can compare proposals from qualified, licensed and insured contractors in our network.
A $150,000 proposal and a $110,000 proposal may not be competing for the same job. A clear scope makes it easier to compare apples to apples.
Here's how it works
1. Tell us about your project. Discuss your remodeling plans, goals and the improvements you want to make.
2. Develop the scope. We help organize the project requirements into a detailed scope so you know what should be included.
3. Establish the requirements. Materials, finishes, allowances and major components are identified so contractors can price the same basic project.
4. Compare contractors. We can introduce you to contractors in our network who may be qualified to perform the work.
5. Review the proposals. Compare price, scope, experience, references, insurance, warranties and other factors.
6. You choose your contractor. You make the final decision about which contractor, if any, to hire.
Important homeowner reminder
Remodeling Network LLC does not make the hiring decision for the homeowner. Homeowners should independently verify a contractor's New Jersey registration, insurance, references, and any licenses applicable to the work before entering into a contract. The contractor you ultimately select is responsible for performing the contracted work in accordance with the agreement between you and that contractor.
Do your homework. Ask questions. Compare proposals. And never feel pressured to sign a contract.